Images from the Hong Kong Protests

by Nomad

Hundreds of thousands of Hong Kong residents took to the streets in mass demonstrations against a proposed extradition law that would allow residents to be tried in mainland China.

Paying the Price: Why American Farmers Have Become Trump's Trade War Casualties

by Nomad

There are always casualties in war, even in trade wars. As tit-for-tat tariff hikes between Trump and China begin to spin out of control, US farmers are already starting to feel the pinch. And it is likely to get much much worse.

Sanity Sunday - Weekly Review (August 6-12) and Nomadic Playlist 5

by Nomad

Paleobiologist, J. William Schopf, once pointed out that "for four-fifths of our history, our planet was populated by pond scum." Looking back over the last week, it's hard to see much sign that things- at least in the noxious world of politics-  have evolved all that much. Despite Trump's campaign promise to drain the swamp, the week proved that the levels of scum are not receding in the slightest. 
So it's time to put on our hip waders and take our weekly march into the muck. 


Trump Tweets about Secret Meeting
On Monday, President Trump admitted in a tweet something which will, legal experts said, be extraordinarily problematic for his defense against the charge of Russian collusion.

Good News Round -Up for Week Two of February 2018

by Nomad

In an endless search of positive news, I scoured the Internet, hunting high and low. and I managed to find these four stories for all my glum Nomads. 

Super Beans for Human Beings

Let's talk beans. Specifically, super beans. 

Developed by scientists at the National Agricultural Research Organisation of Uganda, in collaboration with the Colombia-based International Centre for Tropical Agriculture (CIAT), the Nabe 15 bean is better than your average bean. It's a fast-maturing, high-yield variety that drought-resistant. 

Good News Round-up for Week 1- July 2017

by Nomad

Starting this month, as a regular feature, I would like to offer a round-up of some recent  good news. For the sake of our sanity, it is important that we do not too bogged down in the mire and muck of the Trump age. It's easy to forget that the gloom is not global.
Here are five positive diversions.

Yanqui Matón: How Trump's Bullying of Mexico is Playing With Fire

 by Nomad

In his book "Trump: The Art of the Deal," Mr. Trump- or somebody he paid- wrote:  

"Bullies may act tough, but really they're closet cowards. "

it is hardly an original observation but given the source, it is typical Trump hypocrisy. 

Perhaps nowhere can we better see the Trump's bully personality than his position on our neighbor to the South.  

La Intimidación del Yanqui

Trump's hard-ass diatribes against Mexico included blaming that country for exporting its undesirables (criminals, drug dealers, and rapists) to the US to cause mayhem and to steal American jobs. 

He has- at least, in the past- boasted that he would build an extremely expensive wall to keep Mexicans out and would somehow force the Mexican government to pay for it. In addition, Trump has been pushing to renegotiate NAFTA, the trade agreement that has bound the economies of both countries (and Canada) for more than 20 years.

During the campaign, a lot of voters bought the hateful rhetoric and unfounded allegations. 

Who Really Murdered Manufacturing Jobs in America and Why That's Important in November

by Nomad

American workers have every reason to be angry. For a crafty politician, it's the kind of emotion that wins elections. However, the question is whether they have fully understood who was responsible for their plight.

The Angry Unemployed American Male

The last half century of American history has been marked by one undeniable economic trend: the death of the American worker. Between 1965 and 2015, experts say that employment rates for the American male spiraled relentlessly downward. 

In September, a TIME Magazine article pointed out:

America is now home to a vast army of jobless men no longer even looking for work—more than 7million between the ages of 25 and 54, the traditional prime of working life...The collapse of male work is due almost entirely to a flight out of the labor force—and that flight has on the whole been voluntary. The fact that only 1 in 7 prime-age men are not in the labor force points to a lack of jobs as the reason they are not working.

The Atlantic Monthly provides a little more information:

Poor men without a college degree are disappearing from the labor force. The share of prime-age men (ages 25-54) who are neither working nor looking for work has doubled since the 1970s.

This is, not too coincidentally, the core support of Republican nominee Donald Trump's campaign.

Race to the Bottom: Trump's Minimum Wage Cuts and the Competitive Hoax

by Nomad

Ever imagine a day would come in America when a candidate for president would tell voters that the lowest wage was too good for them. The moment came in the last Republican debate.

At the last Republican debates, we heard GOP candidate Donald Trump trying to explain why he was against an increase in the minimum wage. Trump told the audience that that wages are “too high” in the United States. 

A lot of audacious things come out of the mouth of The Donald, but, coming from a one of the wealthiest candidates in US history, this remark had to be the hardest to hear for people making the lowest wage in the country.

Trump's Tactical Blunder

In response to a question about the New York decision to raise the minimum wage for certain workers to $15 an hour, he said

“Taxes too high, wages too high. We’re not going to be able to compete against the world.”

Cutting wages may have been something Republicans often implied but never dared to say outright. For good reason. For a lot working men and women, a remark like that puts you smack dab in the category of the oligarchical class.

The following day, Trump remained adamant in his declaration and insisted he had nothing to retract.

Almost immediately Trump's foes- a group not limited to the left- jumped on the remark, calling it a colossal blunder. Not in terms of  economic policy. If it were left to conservatives, wages would decrease, and there are probably plenty of CEOs out there who dream of wages dropped to zero. 

After all, nobody seemed to mind the fact that for most workers, wages have remained stagnant for the last two decades. Everything else, like food and housing costs, retail prices and medical costs, all these have soared.

So, few commentators on the Right considered Trump actually be wrong but only that his remark was a tactical misstep. You can think it, you can hint at it, and you can camouflage it with trickle-down redux but if you want to get elected, you sure as hell shouldn't say it. 

It showed, his critics said, a lack of understanding of where his core support originates. The angry working class.

Are You Ready to Say Goodbye to the Elephants?

by Nomad

According to some experts, the African elephant could be extinct in the wild within a few decades. The International Union for the Conservation ofNature reported that the African elephant population had dropped from 550,000 in 2006 to 470,000 in 2013. The worst decline of the elephant numbers was in East Africa where the count went from 150,000 to about 100,000.

How Three Asian Nations are Beating Outrageous Price-Gouging by American Pharmas

by Nomad

Some have started to question the exorbitant prices pharmaceutical companies charge the public. In Asia, we may be seeing a push back against what some see as price-gouging of the most desperate and vulnerable segment of the world's population: The sick and the poor.

In the recent past, Nomadic Politics examined, in two posts, alleged price-gouging for one company's drug for Hepatitis C. There are further developments to that story. First, let's re-cap.

The Breakthrough

The story begins with some very good news. It was reported last year that one orally-administered drug,  Sovaldi (sofosbuvir), has proved to be a breakthrough for the treatment of a silent killer virus, hepatitis C.  

From the clinical trial reports, researchers claimed that Sovaldi was not a life-long treatment but a genuine cure for the deadly disease itself. The therapy required a 12-week therapy but at the end, most of the patients would be free of the disease.  

Then came the bad news: Gilead Sciences, the patent-owner and developer of the drug, was definitely not a charity organization. It was a profit-making company which, according to Wikipedia, earned US $12.059 billion in 2014. 

It was immediately clear to everybody that the Hep C cure was not going to be given away free. Few, however, were expecting the price the company settled on. Sovaldi costs $1,000 a day, adding up to staggering $84,000 for a 12-week supply. 

The problem is obvious: at that price, a cure is out of reach of most patients in the world and even in rich countries.

Crimean Chess: The Six Unintended Effects of Putin's Ukrainian Miscalculation

by Nomad

By miscalculation, Russian President Vladimir Putin seems to have painted himself into a corner since his decision to back the Ukrainian separatists.
At least that's what one expert on the Russian economy and foreign policy believes. 

The Crimean Move

In the chess game  of international diplomacy, Putin's decisions in Ukraine have been more blunderful than wonderful. His supporters have said it was a bold act of defiance to the West but others say it reflects that the Soviet mentality is still very much alive in Mother Russia.

In a recent article, Chatham House's John Lough observes that Vladimir Putin and his advisers may have been correct about how easy it was to undermine Kiev’s control of the strategically important area, Putin seems to have "gravely underestimated the consequences."

Lough is a associate fellow of the Russia and Eurasia program and vice president with BGR Gabara Ltd, a public affairs and strategic consulting company. 

The Crimean move, Lough implies, was not Putin's finest hour.
 He writes:

An easy tactical victory has triggered the prospect of long-term confrontation with the West that spells potential strategic disaster.

It is easy to mistake Putin's decision in Ukraine as an offensive strategy. However, it's probably a misreading of the Russian pyche. One of Russia's historical fears has always been its border security.

Why Elaine Chao, Wife of Mitch McConnell, Could Help Sink his Re-election Bid 3 /3

by Nomad

Here is the final installment in the series on Ms. Elaine Chao, wife of Senator Mitch McConnell and former Secretary of Labor under George W. Bush.

In this post we shall be looking at how under Ms. Chao, the regulatory authority of Department of Labor was systematically dismantled by conservative policy. The results were both predictable and devastating.

To view Part One

To view Part Two

Mining Safety under Ms. Chao

One agency that the Department of Labor oversees is the Mine Safety and Health Administration (MSHA) which administers the provisions of the Federal Mine Safety Act of 1977.

It is an important responsibility.
MSHA is authorized to force mining companies to comply with safety and health standards. Its goal is "to eliminate fatal accidents, to reduce the frequency and severity of nonfatal accidents, to minimize health hazards, and to promote improved safety and health conditions in the nation's mines." 

A kind of OSHA for the mining industry.

At the end of Elaine Chao's tenure as Secretary of Labor, MSHA came under fire for its generally lax attitude to mining safety. According to Scott Lilly, a senior fellow at the Center for American Progress,

"I think you've got people embedded there who are philosophically hostile to the mission of the agency."

One of those at the center of the storm was the head of MSHA, David Lauriski, a man who had actually worked for the coal industry most of his life. Early on in the Bush era he announced that reforms proposed by the Clinton Administration would be tossed out and that from now on, the agency would enforce those rules that "all parties can accept as necessary and practical."

For an agency whose primary purpose was to oversee the mining companies and protecting miners, the changes in policy came as a shocker. But it shouldn't have come as a surprise. Jumping in bed with corporations was practically a prime directive for the Bush agenda.

Why Elaine Chao, Wife of Mitch McConnell, Could Help Sink his Re-election Bid 1/3

by Nomad

In this three-part post, we take a closer look at the career of Elaine Chao, wife of Senator Mitch McConnell. She is one-half of the Washington power couple.

No Trophy Wife

In the last few weeks, the wife of Mitch McConnell, Ms. Elaine Chao, has jumped feet first into the campaign. 

Strategists probably thought what McConnell's flagging re-election bid really needed was a pretty face. Clearly, the public is fed up with looking at Mitch's sour mug.  

However, Ms. Elaine Chao is by no means a trophy wife. Among her many accomplishments, Ms. Chao was the Secretary of Labor in the George W. Bush presidency from 2001 to 2009. 

In that regard, it was perhaps a risky decision to have her make an appearance. 

Cleverly the GOP strategists have thrown a smokescreen over any real discussion of Elaine Chao. Here's how they did it.  In the last few days, the Republicans have attempted to turn the tables on the left by claiming that a left-winger made a rather stupid tweet about the fact that Choa is an Asian and was not born in Kentucky.  The GOP quickly seized this opportunity to charge "racism" -which given the source is perhaps ironic.

To be sure, Ms. Chao has never attempted to hide her background. On the other hand, it's also hard to tell the Elaine Chao story without at least noting her ethnic background. That in itself is not racism. After all, Republicans have used every opportunity to use Ms. Chao's Asian background when it benefited them.  

How Ms. Chao got to where she is today is indeed a fascinating story. A suspect charge of racism shouldn't prevent a careful look at her history and her career.

Chao's Bootstraps

Pulling oneself up by the bootstraps is all the rage for conservatives but wise researchers should take all that malarky with a grain of salt. The Christian Science Monitor profiled Chao telling its readers how she "began her life in this country with nothing."

It really depends on how one describes nothing. As any investor will tell you, nothing is something if you have what they call "access. " Being in the right place with a set of diverse and powerful connections in high places is often worth more than gold in pocket.

A Nation Adrift: Studies Confirm The Slow Sinking of the US Middle Class

by Nomad

Due to economic policies of going back 30 years, studies show, the American middle-class is withering on the vine. While the US may still be the richest country in the world, that wealth has not trickled down to the middle class at all, compared to other nations. The effects of this shrinkage of the middle class could spell big trouble in America's future. 

Falling Behind

Most of us have known for quite some time now but a New York Times article has recently confirms the fact. According to an analysis of the numbers based on surveys reviewing the last 35 years, figures show that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.
In other words, the impact of income inequality based on flawed policy is driving Middle-class families to the point of extinction.

The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.

Hardly startling news, of course, but the proof is fairly conclusive when compared to other countries. 
If studies are anything to go by, then it isn't that America overall is being poorer, only that the middle-class is withering away. The top half of the income scale is still wealthier than any other nation. Indeed, when it comes to global economic growth, America is still a powerhouse, but that's not the problem. The problem is the middle class is clearly not benefiting. 

While America might remain the most wealthy country in the world, the actual distribution of that wealth has changed considerably since our parents' day. As a New York Times article explained:

With a big share of recent income gains in this country flowing to a relatively small slice of high-earning households, most Americans are not keeping pace with their counterparts around the world.

And a comparison of nations makes pretty grim reading. While median income has risen in other countries, in the US, adjusting for inflation, median income per capita has remained virtually unchanged since 2000.

The same measure, by comparison, rose about 20 percent in Britain between 2000 and 2010 and 14 percent in the Netherlands. Median income also rose 20 percent in Canada between 2000 and 2010, to the equivalent of $18,700. Other income surveys, conducted by government agencies, suggest that since 2010 pay in Canada has risen faster than pay in the United States and is now most likely higher. Pay in several European countries has also risen faster since 2010 than it has in the United States.

The cause of the decline are obvious but that doesn't mean they are easy to fix. There will be no quick fixes. It will take compromise and concerted effort to reverse the trend. 

That's something that seems to be in short supply in Washington.  

Betraying Our Values Abroad: How Western Corporations in China Lobbied Against Workers' Rights

by Nomad

Western corporations and economists regularly promote the idea that trade with China has had, and will have, a civilizing effect on the institutions there. As adjunct scholar Stuart Anderson writes

“U.S. corporations act as a liberalizing force, helping to strengthen the private sector, establishing alternative centers of power, and creating subtle but important pressures for democratic reforms. They also tend to raise wages and labor standards in the countries in which they operate.”

Regardless of the merits of the statement, Anderson as a former director at the Cato Institute is hardly an unbiased scholar. The Cato Institute is a libertarian think tank headquartered in Washington, D.C. by Charles Koch, chairman of the board and chief executive officer of the oil conglomerate Koch Industries, Inc.

American Dreams: My Father, Karl Marx and the Man who Sold the Rope 2/2

In part one of this two-part series, I wrote of how the American dream had changed since my father's time. The promise of ever-increasing prosperity seems to belong to a shrinking minority. History had played an ironic joke on the West. While the Soviet Union was collapsing due to the pressure of union labor, the United States under Reagan was signaling to corporate America that unionized labor was to be discarded on the ''scrap heap of history.''

And Then The Slow Decline

Now let's take a look at the consequences of this policy and who actually benefited.

At one time, when the main challenge to capitalism was Communism, leaders of the free world touted rising consumption afforded by rising wages as a measure of its success.

Starting around the 1980s, however, real wages and productivity, which once went hand in hand, decoupled. No longer did harder work mean higher wages. Productivity continued to rise- adding to the wealth of corporations- while wages remained steady. This trend has continued to the present day.

Additionally, access to easy credit has allowed the American citizen to shop and shop, giving, at least, the illusion of prosperity. But buying a lifestyle built on credit is a gamble because credit assumes that tomorrow will be as good or better than today. Life could be pretty good with a high credit limit. Especially with the flood of cheaply-priced merchandise on offer, all of it made possible by non-unionized workers in Asia and elsewhere.

Consider these facts.

Before credit became so widely available, personal savings rates were rising steadily each year. In 1960, Americans were saving 5.4% of their total income, It reached a high of 14.6% in 1975, and by 1982, it leveled off at 10.9%. But all that changed in the mid-1980s under Reagan when consumer credit became more commonplace.

At that point, personal savings began dropping hitting an all-time low of just .09% in 2000 and it stayed low until the last few years. After hitting depression-era lows, it has been slowly rising again since 2008.